Dabur India posts strong growth backed by increased adspend in Q1FY18

A 33% increase in ad spend in the first quarter of FY19 contributed to strong growth in revenue and net profit of Dabur India as the FMCG major posted 19.6% growth in its comparable consolidated revenue and 24.6% growth in its consolidated net profit.

The company spent Rs 199 crore in the quarter ended June 30, 2018, up 33% from Rs 150 crore in the corresponding quarter of the previous year. The growth in advertising spend was 58% over the last quarter. The company had spent Rs 125.64 crore in Q4FY18.

Dabur’s consolidated revenue stood at Rs 2,080.70 crore, while net profit was Rs 329.22 crore. The company’s comparable standalone India revenue for the quarter grew by 24.7%. The company reported a standalone India revenue of Rs 1,473.1 crore in Q1 of 2018-19. The domestic FMCG business reported a volume growth of 21% during the quarter.

“Despite an increase in the level of competitive intensity, our brands reported a robust performance during the quarter, growing ahead of the market and delivering strong double-digit growth across all our key categories like Health Supplements, Hair Care, Oral Care, Skin Care, Home Care and Foods. We have put in place a prudent growth strategy and continued to invest heavily behind our brands to successfully tap the emerging opportunities. Our India FMCG business, in fact, reported its highest-ever Volume growth of 21% during the quarter,” Dabur India Chief Executive Officer Sunil Duggal said.

The Shampoo business ended Q1 with a growth of over 30%. Dabur’s Honey sales continued to report strong gains, growing by around 42%, driving the Health Supplements category growth to 27.5% in Q1. The Skin Care category grew by 27.1%, while the Foods business, led by strong demand for our packaged juices, posted an over 26% growth during the first quarter. The Digestives business also grew by nearly 22% during the first quarter of 2018-19, while Dabur’s Home Care and Oral Care businesses reported an over 17% growth.

“We have been witnessing a gradual improvement in consumer demand. Our focus on brand-building and market expansion coupled with innovation has helped Dabur sustain strong growth in our core categories, which has been significantly ahead of the market. Going forward, we will continue to focus on pursuing an aggressive and profitable growth strategy,” Duggal added.

During the quarter, Dabur’s International Business reported a 10.5% growth, in constant currency terms. Sales in GCC markets grew 17%, led by Saudi Arabia which reported a 54% growth during the quarter. The Business in Egypt reported 31% gains.

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